Overview
- HTX announced the delisting on June 6 and completed removal on June 7, automatically converting all eligible USD1 balances on its platform to Tether (USDT) at a 1:1 rate.
- World Liberty Financial says it froze specific on-chain addresses linked to HTX as part of sanctions-compliance checks that followed the U.K.’s May 26 designation of Huobi Global S.A.
- WLFI’s token contracts include administrator blacklist and freeze functions that let the issuer block transfers at the protocol level without a court order, a power it previously used against Justin Sun in September 2025.
- HTX suspended WLFI and USD1 trading pairs on June 5 and has demanded WLFI reverse the freezes while signaling possible legal action as retail customer funds were directly affected.
- The dispute raises broader stakes for exchanges and users because issuer-level freeze mechanics can immobilize customer assets, prompt more delistings, and force new law and policy questions about sanctions, custody and smart-contract governance.